The Research On The Corporate Governance Issue Of China's Security Company And The Solutions

Corporate Governance is the critical issue, which dominates the survival and development of companies in the modern market. There are many disputes about the definition of Corporate Governance among foreign and domestic scholars and governance experts. However, Corporate Governance originates from the division of ownership and control and the trust relationship, which comes from such division. Only with proper governance, can modern enterprises solve the conflicts between owners and operators, lower financing costs, attract steady investment in long-term and promote economic development of countries. The essay points out the current situation and problems of the Corporate Governance of security companies in China by comparing and analyzing the Corporate Governance models of foreign security companies on the base of a comprehensive discussion of Corporate Governance. With reference to the governance experience of world famous security companies, the essay recommends strategies to improve the governance of China's security companies, which include optimizing the share holding structure, sophisticating the functions of share holders meetings, enhancing the functions of committees of directorates, increasing the independence of independent directors, exerting the balancing function of supervisors, strengthening the motivation and control of the management, reducing government interfering and optimizing the controlling functions of all kinds of markets.